In July 2024, companies under the Dangote Group experienced a significant drop in market capitalization, losing about N1.21 trillion. This decline followed double-digit decreases in share prices across the group’s subsidiaries.
The three Dangote Group companies listed on the Nigerian Exchange (NGX) are Dangote Cement, Dangote Sugar Refinery, and NASCON Allied Industries. In July, their share prices fell by 10%, 13.6%, and 19.8%, respectively, contributing to the overall market capitalization loss.
Market Trends
The NGX also experienced a 2.28% decline in July, with its market capitalization decreasing by N1.09 trillion, from N56.602 trillion at the beginning of the month to N55.514 trillion.
- Dangote Cement: Market cap fell by N1.12 trillion, ending July at N10.07 trillion, down from N11.19 trillion.
- Dangote Sugar Refinery’s market cap dropped from N522.32 billion to N451.26 billion, or N71.06 billion.
- NASCON Allied Industries: Experienced a N19.7 billion decline, with its market cap decreasing from N93.2 billion to N79.7 billion.
Impact on Aliko Dangote
The stock market losses have notably impacted Aliko Dangote, President of the Dangote Group. Dangote, Africa’s richest man, holds significant stakes in these companies—86% in Dangote Cement, 72.2% in Dangote Sugar Refinery, and 62.19% in NASCON. These declines translated into approximately N1.02 trillion (~$680 million) to Dangote’s fortune.
According to the Bloomberg Billionaires’ Index, Dangote’s net worth was around $14.8 billion on July 1, 2024, but it dropped to $13.6 billion by the end of the month. His assets primarily include publicly listed companies, while his private assets, such as the Dangote fertilizer plant, are valued at $5.1 billion. The Dangote Refinery, a major asset, remains unvalued amid ongoing controversies.
Conflict with Nigerian Authorities
The sharp decline in Dangote’s assets has been partly attributed to the group’s financial struggles, particularly in Dangote Sugar and NASCON. However, the conflict between Aliko Dangote and Nigerian regulators has been a significant factor.
In late June, Dangote’s Vice President of Oil and Gas expressed frustration over difficulties in sourcing crude oil from International Oil Companies (IOCs), accusing them of undermining the refinery—a claim refuted by the Nigerian Upstream Regulatory Commission (NUPRC).
On July 14, Dangote highlighted a reduction in NNPC’s stake in the refinery from 20% to 7.2%. In response, the CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) alleged that the Dangote Refinery was supplying substandard diesel to the public.
The ongoing dispute with regulatory authorities has further complicated the situation for Dangote and his business interests.
